According to the Financial APP, the RF chip giant Qorvo (QRVO.US) released its fiscal Q2 earnings report for the 2025 fiscal year ending September 28, 2024, after the post-market trading on October 29. The data shows that Qorvo Q2 revenue was $1.05 billion, a 5.2% year-on-year increase and an 18.0% increase from the previous quarter, better than the market's expected $1.03 billion; adjusted EPS was $1.88, exceeding the market's expected $1.85.

However, due to changes in the global smart phone market, Qorvo's guidance for the third quarter fell short of expectations. The company expects third quarter revenue to be between $0.875 billion and $-0.925 billion, below analysts' expectations of $1.06 billion; adjusted EPS is expected to be between $1.10 and $1.30, also falling short of analysts' expectations of $1.93.

Qorvo's Chief Financial Officer, Grant Brown, pointed out that Qorvo currently expects lower revenue and gross margin for the 2025 fiscal year compared to 2024. He mentioned that the flagship and high-end smart phone markets have performed well, but Qorvo is facing unfavorable impacts from its product portfolio. In addition, the focus of the mid-range and entry-level Android 5G smart phone market has shifted towards the entry-level, a trend that Qorvo currently believes will not reverse. Grant Brown stated that Qorvo is taking appropriate actions, including factory consolidation, reducing operating expenses, and focusing on opportunities that align with long-term profitability goals.

Affected by the weaker-than-expected performance guidance for the third quarter, Qorvo's stock plunged 27.31% at the close of Wednesday's post-market trading. Other companies with significant exposure in the smart phone market also saw declines in their stock prices at the close on Wednesday, with Skyworks Solutions (SWKS.US) falling 8.21% and Qualcomm (QCOM.US) falling 4.76%.

Analyst Christopher Rolland from Susquehanna stated: 'With the focus of the mid-range and entry-level Android 5G smart phone market shifting to the entry-level, Qorvo reported better performance in the second quarter, but weaker guidance for the third quarter.' 'Although many expected an increase in revenue from Apple for Qorvo this year, it now appears that revenue from Apple is moderately declining due to the company management's mention of facing the adverse impacts of its product portfolio.' Data shows that in the 2024 fiscal year, Apple contributed nearly half of Qorvo's revenue, while Samsung contributed 12%. Susquehanna lowered its target price for Qorvo from $115 to $90 and maintained a 'Neutral' rating on the stock.

Meanwhile, Bank of America lowered its target price for Qorvo from $115 to $80 and reiterated an 'Underperform' rating on the stock. Bank of America analyst Vivek Arya stated: 'In a terminal market with bleak long-term growth opportunities, Qorvo is working to address specific execution issues in its core mobile business ACG (accounting for 72% of sales).'

Investment bank Benchmark downgraded its rating on Qorvo from 'buy' to 'hold' after the company announced its second quarter performance. Benchmark pointed out: "Qorvo did not specifically mention its largest customer Apple (potentially accounting for nearly 50% of revenue), but also noted that in Samsung's current flagship phones, the dollar content is low. In the highest-selling OEM models in the autumn, Qorvo's revenue is lower than last year." "In the teardown of Apple's iPhone 16, the decrease in Qorvo's dollar content can also be seen. The company has a smaller impact on Apple's non-Pro models, and the mix ratio of non-Pro models seems to be higher than initially expected."

Raymond James downgraded its rating on Qorvo from 'outperform large cap' to 'neutral to large cap'. Raymond James analyst Srini Pajjuri said: "Apple's product mix is affecting Qorvo's content, so management now expects Apple's revenue in the 2025 fiscal year to decline in the low single digits." However, the analyst also pointed out that Qorvo's non-smartphone business is performing well, including autos, defense and aerospace, as well as the connectivity and sensors division.